Investing.com - Gold prices edged lower on Wednesday, as a recent rally to seven-week highs started showing signs of fatigue.
Comex gold futures for August were at $1,262.93 a troy ounce by 8:50AM ET (1250GMT), down $9.50, or about 0.8%. It touched its highest since June 14 at $1,273.30 in the prior session.
Data released earlier showed that U.S. non-farm private employment rose less than expected in July, but remained in territory consistent with a strengthening labor market.
Non-farm private employment rose by 178,000 last month, just below forecasts for an increase of 185,000, payroll processing firm ADP said. The economy created 191,000 jobs in June, upwardly revised from a previously reported increase of 158,000.
The ADP figures come ahead of the U.S. Labor Department's more comprehensive nonfarm payrolls report on Friday, which includes both public and private-sector employment.
Gold futures rose Tuesday as lackluster economic data raised questions about whether the Federal Reserve will follow through with another rate increase this year.
The yellow metal has been well-supported in recent weeks as fading expectations for a third Fed rate hike this year combined with deepening political turmoil in the White House sent the dollar to 15-month lows.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Elsewhere on the Comex, silver futures slumped 23.7 cents, or around 1.4%, to $16.52 a troy ounce.
Among other precious metals, platinum was down 0.6% at $943.90, while palladium added 0.4% to $896.85 an ounce.